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Tqm unit 2

  3. LEADERSHIP • Leadership is the process of influencing others towards the accomplishment of goals. • Leadership is lifting of mans vision to higher sights, the raising of mans performance to a higher level. • Leaders create clear and visible quality values and integrate those values into the organizational strategy.
  4. Characteristics of Quality Leaders 1. The customer first - listen customers 2. Value people – peoples skills and capabilities 3. Build supplier partnership 4. Empower people – train and coach 5. Demonstrate involvement/commitment 6. Strive for excellence 7. Explain and deploy policy
  5. 8. Improve communication 9. Promote teamwork 10.Benchmark continuously 11.Establish system 12.Encourage collaboration
  6. Leadership Styles for Effective Leaders • Directing Style of Leadership • Consultative Style of Leadership • Participative Style of Leadership • Delegating Style of Leadership
  7. Requirements of Effective Leaders Five core leadership skills required for effective leadership are •Vision •Empowerment •Institution •Self understanding •Value congruence
  8. Role of TQM Leaders • Study TQM and investigate how TQM is implemented elsewhere • Establish policies related to TQM. • Establish “priority of quality‟ and “customer satisfaction‟ as the basic policy. • Assume leadership in bringing about a cultural change. .
  9. • Check whether the quality improvement programs are conducted as planned. • Become coaches and cheer leaders to implement TQM. • Generate enthusiasm for TQM activities. • Visit other companies to observe TQM functioning. • Attend TQM training program. • Teach others for the betterment of society and the surroundings
  10. Strategic Quality Planning • It sets the long term direction of the organization in which to proceed in future. • Strategic planning is the process of envisioning the organization's future and developing the necessary goals, objective and action plan to achieve that future.
  11. Goals should • Improve customer satisfaction, employee satisfaction • Be based on statistical evidence • Be measurable • Have a plan or method for its achievement • Have a time frame for achieving the goal • Finally, it should be challenging yet achievable
  12. Strategic Quality Planning Process • Identification of customer needs • Determination of customer position • Predict the future • Gap analysis • Closing the gap • Align the plan with mission and vision • Implementation of the plan
  13. Quality Council • Quality council is a team to provide overall direction for achieving the total quality culture. The quality council is composed of  CEO  Senior managers  Quality council coordinator
  14. Objective of the Quality council • To raise the quality consciousness of the organization • To ensure the effective functioning of the organization • To encourage basic and applied R&D in the field of quality • To raise the level of training of personnel engaged in quality activities • To facilitate upgradation of testing, calibration and laboratories facilities
  15. Duties of the council • Develop the core values, vision statement, mission statement and quality policy statement • Develop the strategic long term plan with goals and Annual Quality Improvement Program with objectives • Create the total education and training plan • Determine and monitor the cost of poor quality • Determine the performance measures • Determine projects those improve the process • Establish multifunctional project and work group teams • Revise the recognition and rewards system
  16. Employee Involvement • Its is the back bone of TQM movement • An effective TQM effort requires the total involvement from every person at all levels in the organization
  17. • Some of the important aspect of employee involvement are »Employee Empowerment »Employee Motivation »Team and Teamwork »Recognition and Reward Schemes »Performance Appraisal
  18. Employee Empowerment • Empowerment is opposite of helplessness. • The verb empowers means ‘to give ability or authority • “Empowerment is an environment which people have the ability, the confidence and the commitment to take responsibility and ownership to improve the process and initiate the necessary steps to satisfy the customer requirements”.
  19. General principles for Empowering Employees • Tell the people about their responsibilities. • Give them authority equal to the responsibility assigned to them. • Set standard of excellence.
  20. • Provide them with training that will enable them to maintain standard. • Give them knowledge and information • Provide them with the feedback on their performance. • Trust them and create trust worthiness in the organization. • Allow them to fail but guide them and counsel them when needed. • Treat them with dignity and respect.
  21. Condition to create the Empowered Environment • Everyone must understand the change. • The system needs to change to the new paradigm. • The organization must provide information, education, and skill to its employee.
  22. Characteristics of Empowered Employee • They feel responsible for their own task. • They are given a free hand in their work. • They are well trained, equipped, creative and customer oriented. • They are critical, self esteem, and are motivated. • They are challenged and encouraged. • They find new goals and change challenges
  23. Employee Motivation • Stimulating people to accomplish goals. • Including people inner drives and action towards certain goals and committing their energies to achieve these goals.
  24. Importance of Motivation • Improves employee involvement • Promotes job satisfaction • Securing a high level of performance and enhances efficiency and productivity • Creates a congenial working atmosphere in the organization
  25. Theories of Motivation In order to understand and improve the employee involvement, it is necessary to assimilate the underlying theories of motivation 1. Maslow’s hierarchy theory 2. Herzberg’s two factor theory
  26. Herzberg’s two factor theory Herzberg’s two factor theory is also called as “motivation-hygiene theory” This theory is based on two factors 1. Motivational factors or satisfiers 2. Hygiene factors or dissatisfies
  27. Team and Teamwork • Team: A group of people working together to achieve common objectives or goals. • Teamwork: A cumulative action of the team during which each member of the team subordinates his individual interests and opinions to fulfill the objectives or goals of the group.
  28. Benefits of teamwork • Improved solution to quality problem. • Improved ownership of solution. • Improved communication. • Improved integration.
  29. Types of Team 1. Process improvement team 2. Cross-functional team 3. Natural work team 4. Self-directed/Self-managed work team
  30. Characteristics of Successful Teams Sponsor Team charter Team composition Training Ground rules Clear objectives Accountability
  31. Well defined decision procedure Resources Trust Effective problem solving Open communication Appropriate leadership Balanced participation Cohesiveness
  32. Role of Team Members  Devote themselves to the common team goals  Feel themselves responsible and equal  Be interested and motivated  Accept, appreciate and respect each other  Give high priority to continuous improvement  Participate actively with the activities of the team
  33.  Offer views, opinions and ideas freely and voluntarily.  Trust, support, understand and have a genuine concern for other team members  Attend training seriously with a receptive attitude  Abide by the decision taken by the team  Encourage feedback on own behavior Make personal improvement a routine
  34. Stages of Team Development
  35. Barriers to Team Progress • Insufficient training • Incompatible rewards and compensation • Lack of planning • Lack of management support • Lack of union support • Project scope to large • Project objectives are not significant • No clear measure of success
  36. Recognition and Reward Recognition: It is a process by whereby management shows acknowledgement of an employee outstanding performance Reward: It is a tangible one, such as increased salaries, commission, cash bonus, gain sharing etc., in order to promote desirable behavior
  37. Why should one Recognize Employee • Improve employee morale • Show the company appreciation for better performance • Create satisfied workplace • Create highly motivated workplace • Reinforce behavioral patterns • Stimulate creative efforts
  38. Types of Rewards • Intrinsic reward • Extrinsic reward
  39. Ways to recognize people • Send letters • Develop a “behind the scene” award • Create best ideas of the year • Feature the quality team of the month • Honor the peers • Invite a team for coffee or a lunch
  40. • Take interest in employees development • Send a team to special seminars • Ask your boss to send a letter of acknowledgement • Have a stock of small gifts • Promote or nominate for promotion • Get your team picture in the company news letter
  41. Performance Appraisal • It is systematic and objective assessment or evaluation of performance and contribution of an individual
  42. Need of Performance Appraisal • To identify employees for salary revision, promotion, transfer, demotion and lay off • To determine training and development needs of the employee • To motivate employees • To know personal strength and weakness • To make the supervisors and executive more observant of their subordinate
  43. Process of Performance Appraisal
  44. Benefits of Performance Appraisal • It provides useful feedback to the employee. • It helps in understanding the pay adjustment, increment and bonuses. • It provides basis for employee for promotion, transfer and demotion. • It helps the employee to plan the carrier. • It puts a short of pressure on people for better performance since he is being continuously observed.
  45. Continuous Process Improvement • Process refers to business and production activities of an Organization. • Processes for improvement- eg. Design & Manufacturing, Marketing, Stores & Purchase etc.
  46. Input Output Process Model
  47. Juran’s Quality Trilogy • Juran divides quality management into three managerial process. »Quality planning »Quality control »Quality improvement
  48. Quality planning
  49. Quality control
  50. Quality improvement • Build awareness of need and opportunity for improvement • Set goals for improvement • Organize to reach your goals • Provide training • Carry out projects to solve problems • Report progress • Give recognition • Communicate result • Keep score • Maintain momentum by making annual improvement part of the regular process of the company.
  51. Types of Quality Problems 1. Compliance problems 2. Unstructured problems 3. Efficiency problems 4. Process-Design problem 5. Product-Design problem
  52. Improvement Strategies ( Four R’s of improvement strategies ) 1. Repair strategy 2. Refinement strategy 3. Renovation strategy 4. Reinvention strategy
  53. PDCA cycle • PDCA (plan-do-check-act, sometimes seen as plan-do-check-adjust) is a repetitive four-stage model for continuous improvement (CI) in business process management. • The model is implemented to improve the quality and effectiveness of processes within product lifecycle management, project management, human resource management (HRM), supply chain management (SCM) and many other areas of business.
  54. Continuous process improvement cycle using PDCA cycle
  55. Benefits of PDCA cycle • Daily routine management • Problem solving process • New product development • Human resource development • Project management • Continuous development • Vendor development • Process trails
  56. ‘5S’ Housekeeping • 5S is a philosophy and a way of organizing and managing the workspace and work flow with the intent to improve efficiency by eliminating waste, improving flow and reducing process unreasonableness
  57. Japanese term English term Meaning Seiri Sort Separate out all unnecessary things and eliminate them Seiton Set Arrange the essential things in order, so that they can be easily accessed Seiso Shine Clean the work place every thing without fail Seiketsu Standardize Standardizing the way of maintain cleanliness Sitsuke Sustain Practice FIVE S daily. Make it a way of life. This also means commitment.
  58. Objective 5S • Neat and clean work place • Productivity • Safety • Work commitment • Standardize work efficiency
  59. KAIZEN • In Japanese: kai, which means 'change‘, and zen, which means 'good' • Kaizen is a Japanese word for “continuous improvement or improvement over improvement” • It is the process of continuous improvements in small increments that make the process more efficient, effective, controllable and adequate.
  60. KAIRYO • It means large size technological changes or upgrade. • It describe improvement through innovation. • Improvements in one or two great jumps and it does not allow constant improvement.
  61. Kaizen kariyo Effect Long term and long lasting, but undramatic Short term, but dramatic Pace Small steps Big steps Time frame Continuous and incremental Intermittent and non incremental Change Gradual and constant Abrupt and volatile Involvement Everybody Select few champions
  62. Kaizen kariyo Approach Collectivism, group efforts, system approach Rugged individualism, individual ideas and efforts Mode Maintenance and improvement Scrap and rebuild Spark Conventional know how and state of art Technological break thoughts, new invention, new theories Practical requirements Requires little investment, but great effort to maintain it Requires large investment, but little effort to maintain it Effort orientation People Technology Evaluation criteria Process and effort for better results Results for profits Advantage Works well in slow growth economy Better suited to fast growth economy
  63. Aspect of kaizen • Total employee involvement • Labor and management relationship • Effective leadership • Adaptability to changing environment • Reducing waste • Customer oriented • Quality awareness
  64. Features of Kaizen • Value added work activities • Reducing the waste • Principles of motion study and cell technology • Principle of material handling and one piece- flow
  65. • Documentation of standard operating procedure • Implementation of 5 S • Visual management by means of visual display • Poka-Yoke to prevent or detect error • Team dynamics which include problem soving, communication skills and conflict resolution
  66. Role of people implementing in Kaizen • Top management should be committed • The executive just below the top management must formulate and carry the kaizen goals • Supervisor must use and follow kaizen activities • Workers must be involved in kaizen
  67. Quality Circles A group of employees who meet regularly to consider ways of resolving problems and improving production in their organization. "A Quality Circle is volunteer group composed of members who meet to talk about workplace and service improvements and make presentations to their management with their ideas."
  68. Quality Circle Attributes • Participation management • Human resource development techniques • Problem solving technique
  69. Objective of quality circles • Promote job involvement • Create problem solving capability • Improve communication • Promote leadership qualities • Promote personal development • Develop a greater awareness for cleanliness • Develop greater awareness for safety • Improve morale through closer identity of employee objectives with organization’s objectives
  70. • Reduce errors. • Enhance quality • Inspire more effective team work • Build an attitude of problem prevention • Promote cost reduction • Develop harmonious manager, supervisor and worker relationship • Improve productivity • Reduce downtime of machines and equipment • Increase employee motivation
  71. Characteristics of Quality Circles • Optimum number of employee is between 6 to 10 • It should have a homogeneous group • Participation of the members should be voluntary • They should meet regularly • They should identified the problem • Members should be trained • Every decision should be accepted by the management before implementation
  72. Elements of Quality Circles 1. Top management 2. Steering committee 3. Facilitator 4. Leader/Deputy leader 5. Members 6. Non-members
  73. Process of Quality Circles Operation • Problem identification • Problem selection • Problem analysis • Generate alternative solution • Select the most appropriate solution • Prepare plan of action • Present solution to management • Implementation of solution
  74. Benefits of Quality Circles • Hurdles in work get resolved by the grass root • Organization can easily undertake more difficult and challenging assignments for its growth and profit. • As the employees gain experience they take more challenging projects • Cost reduction. • Increased productivity.
  75. • Improved quality. • Better communication. • Better house-keeping. • Increased team work. • Smooth working. • Better mutual trust. • Greater sense of belongingness. • Increased safety. • Better human relations.
  76. Limitation of Quality Circles • Participation is not always voluntary in all case • Participation fades away if it lacks the top management support • No involvements of trade union
  77. Ishikawa's Ten Principles for Customer/Supplier Relations • Both the customer and the supplier are fully responsible for the control of quality. • Both the customer and the supplier should be independent of each other and respect each other's independence. • The customer is responsible for providing the supplier with clear and sufficient requirements so that the supplier can know precisely what to produce. • Both the supplier and the customer should enter into a no adversarial contract with respect to quality, quantity, price, delivery method, and terms of payments.
  78. • The supplier is responsible for providing the quality that will satisfy the customer and submitting necessary data upon the customer's request. • Both the customer and the supplier should decide the method to evaluate the quality of the product or service to the satisfaction of both parties. • Both the customer and the supplier should establish in the contract the method by which they can reach an amicable settlement of any disputes that may arise. • Both the customer and the supplier should continually exchange information, sometimes using multifunctional teams, in order to improve the product or service quality. • Both the customer and supplier should perform business activities such as procurement, production and inventory planning, clerical work, and systems so that an amicable and satisfactory relationship is maintained. • When dealing with business transactions, both the customer and supplier should always have the best interest of the end user in mind.
  79. Supplier Partnership Partnering is a long-term commitment between two or more organizations for the purpose of achieving specific business goals & objectives The relationship of customer and supplier should be based upon trust, dedication to common goal and objective, and an understanding of each party’s expectation and values
  80. Benefits of Partnering • Improved Quality, • Increased efficiency, • Lower cost, • Increased productivity • Increased opportunity for innovation, & • Continuous improvement of products and services • Increased market share
  81. Japanese View on Partnering • The Japanese partnering concept is keirestu • The key point is developing a long term relationships with a key suppliers rather than having a short term relationship with many suppliers.
  82. key elements of Partnering The three key elements of partnering are: »Long-term commitment. »Trust. »Shared vision.
  83.  Long-term commitment provides the needed environment for both parties to work toward continuous improvement.  Total organization involvement is necessary, CEO to the workers.  Each party contributes its unique strengths to the process.  A supplier may only take risks in a long-term commitment.  Dependency appears as a national consequence in a long term commitment, it is not a sign of weakness, but a sign of strength of the relationship and is necessary for competitive advantage. Long-term commitment
  84. Trust  The strength of Partnering is based on fairness and parity.  Trust enables the resources and knowledge of each partner to be combined to eliminate an adversarial relationship.  Mutual trust forms the basis for a strong working relationship.  Open and frequent communication avoids misdirection, disputes and strengthens the relationship.  The parties may share or integrate resources such as training activities, administrative systems and equipment.
  85. Shared Vision  Each of the partnering organizations must understand the need to satisfy the final customer.  There should be an open and candid exchange of needs and expectations.  Shared objectives and goals ensure a common direction aligned with each parties’ mission.  Partners must understand each other’s business so that equitable decisions are made.  These decisions must be formulated and implemented as a team.
  86. SOURCING There are three types of sourcing:  Sole sourcing o Organization is forced to use only one supplier. o Technical specifications, patents, raw material location, etc. cause this kind of sourcing. o Partnering is a natural consequence, to benefit the end user.  Multiple sourcing o Two or more suppliers for an item are used. o Competition will result in better quality, lower costs and better service. o It eliminates disruption of supply due to strikes etc.
  87.  Single sourcing o A planned decision by the organization to select one supplier for an item when several sources are available. o Advantages for the organizations include reduced cost, complete accountability, supplier loyalty, partnering and a better end product with less variability. o Advantages for the supplier include new business from the customer, reduced cost of the business and production processes. o It has allowed organization to reduce their supplier base.
  88. Stages in Supplier Selection and Evaluation • Survey stage • Enquiry stage • Negotiation and selection stage • Experience stage
  89. ishikawa's 10 conditions for selection and evaluation of suppliers 1. Supplier knows management policy of the organization. 2. Stable management system of supplier , respected by others. 3. Supplier has the capability of dealing with technological innovations. 4. Supplier can supply material meeting quality specifications.
  90. 5. Supplier has capability to meet the amount of production. 6. Supplier can breach corporate secrets. 7. The supplier is easily accessible in terms of transpiration and communication. 8. The supplier is sincere in implementing the contract provisions. 9. The supplier has an effective quality system and improvement program. 10. The supplier has a track record of customer satisfaction and organization credibility.
  91. Supplier Certification • The supplier certification process starts only after the supplier begins shipment of the product to the organization Some benefits are • Elimination of receiving inspection • Creation of customer and supplier partnership • Reduced the number of suppliers that reduces the overhead costs
  92. Supplier Certification Criteria 1. Customer and supplier shall have agreed on specifications which are mutually developed, justifiable, and not ambiguous. 2. Supplier shall have no product-related lot rejection for a significant period of time. 3. Supplier shall have no non-product related rejections for a stated period of time.
  93. 4. Supplier shall have no negative non-product related incidents for a stated period of time. 5. Supplier shall have a fully documented quality system. (ISO 9000) 6. Supplier shall have successfully passed an on-site system evaluation. 7. Supplier must make inspections and tests. (Laboratory results & SPC are used) 8. Supplier shall have the ability to timely provide inspection and test data.
  94. Supplier Rating • A supplier rating system also referred as a Scorecard system, which is used to obtain overall rating of suppliers performance • Usually suppliers rating is based on quality, price, performance and production capability
  95. Objective of Supplier Rating  To obtain an overall rating of supplier performance.  To ensure communication with suppliers in the areas of quality, service, delivery and other desired measures.  To provide supplier with a detailed and factual record of problems for corrective action.  To enhance the relationship between the customer and the supplier.
  96. Relationship Development • It refers to maintaining and improving the growth of the customer-supplier relationship • It can be developed through »Inspection »Training »Team approach

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